Tax and Fiscal Policy

Short-term setbacks should not derail Truss’ plan for growth

Harrison Griffiths writes in The Daily Express

IEA Communications Officer Harrison Griffiths wrote for The Daily Express on the future of Liz Truss’ economic agenda.

Arguing that this week’s market volatility has been influenced by the degree of unfunded borrowing, Harrison wrote:

“The fiscal statement sent a signal to the markets that it was willing to borrow to fund tax cuts, but the £45bn cost of these tax cuts pales in comparison to the £100-200bn cost of the energy support announced last week.”

Noting that markets desire stability, Harrison nonetheless urged Truss to stay the course:

“Truss’ economic plan is a clear departure from the prior consensus, but it is a necessary departure from the stagnant and managerial status quo. If Tory MPs and voters get behind her in the short-term and allow her to enact her plans, there is no reason that markets cannot adapt.”

The full article can be read here.